We have updated our comprehensive chartpack on labour markets in Australia and New Zealand.
The modest easing in Australia’s labour market conditions in recent months removed one hurdle for the RBA to continue gradually easing monetary policy in August.
But the labour market remains relatively tight in an historical sense and compared with prevailing conditions in several other economies.
Since the monthly labour force survey began in 1978, the unemployment rate has been lower than it is currently on 48 occasions (out of 570). But only 6 of those monthly observations were prior to 2021.
Very low rates of underemployment - particularly for females - also imply that there is relatively little additional labour supply that can come from squeezing the existing workforce harder.
It’s not all roses.
Despite relatively tight labour market conditions overall, people not in work continue to find it reasonably difficult to gain employment. That is, hiring has diminished, but firing has also remained low. This is also a feature of some other labour markets.
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